Polymarket Considers USDC Alternative with Proprietary Stablecoin to Capture Reserve Yields

Polymarket, a crypto-based prediction platform, is evaluating the launch of its own stablecoin as a strategic initiative to capture yield currently earned by Circle through USDC reserves. The platform processes all transactions in USDC on Polygon, generating consistent demand for the stablecoin.

Two options are being considered: developing an in-house stablecoin or establishing a revenue-sharing partnership with Circle. This decision coincides with new opportunities arising from U.S. stablecoin legislation, enabling crypto-native companies to expand their market presence.

A native stablecoin could improve liquidity in prediction markets and foster deeper integration with DeFi protocols within Polymarket's ecosystem. This aligns with industry trends where platforms aim to internalize value from their economic activities.